Trends in SGX Nifty suggested a positive start for Sensex and Nifty on Tuesday. Nifty futures were trading 35.55 points or 0.33 per cent higher at 10,951.80 on Singaporean Exchange
Domestic equity market benchmarks BSE Sensex and Nifty 50, after ending at two-week lows, staring at a gap-up opening on Tuesday. Both the headline indices started the weak on a negative note, where Sensex fell 667 points or 1.77 per cent to end at 36,939.6 while the NSE’s Nifty declined 173.6 points, or 1.57 per cent, to close at 10,899. Today, investors will keep track of developments in COVID-19 cases, stock-specific action, corporation earnings and other global cues. Besides, RBI MPC meeting will begin from today. “We would advise investors to remain defensive in their portfolio approach. Traders, on the other hand, are advised to stay cautious and keep booking profit at regular intervals. Going ahead, investors would watch out for any development over US stimulus announcement and RBI credit policy for a possibility of another rate cut – which could provide some cheer to the markets,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
SGX Nifty gains in trade: Trends in SGX Nifty suggested a positive start for Sensex and Nifty on Tuesday. Nifty futures were trading 35.55 points or 0.33 per cent higher at 10,951.80 on Singaporean Exchange.
Trump signs executive order to restrict H1B visa use: President Donald Trump on Monday signed an executive order restricting federal agencies from contracting or subcontracting foreign workers, hurting Indian IT professionals who work in the US on the H-1B visa. The move came over a month after the Trump administration on June 23 suspended the H-1B visas along with other types of foreign work visas until the end of 2020 to protect American workers in a crucial election year.
RBI MPC meet: The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is set to meet for three days, beginning from today and announce the decision on August 6, this is likely to sway market sentiment.
Fed calls for fiscal support: The US economy needs increased government spending to tide over households and businesses and broader use of masks to better control the virus, US central bankers said on Monday. “The ball is in Congress’ court,” Chicago Fed President Charles Evans told reporters on a call, as per a Reuters report.
FPIs remain net sellers: Foreign portfolio investors (FPIs) continued to be net sellers of Indian debt for the fifth straight month this year as they sold $245.63 million worth of bonds on a net basis in the month of July. So far, FPIs have sold over $14.5 billion worth of Indian debt since the beginning of 2020.
Global markets: Asian stock markets edged higher in Tuesday’s session. In Japan, Nikkei 225 gained 1.39% while the Topix index advanced 1.62%. South Korea’s Kospi gained 1.37%. In overnight trade on Wall Street, Nasdaq surged to a record high close. The Dow Jones Industrial Average rose 0.89% while the S&P 500 gained 0.72%. The Nasdaq Composite climbed 1.47% to 10,902.80, beating its previous record high close on July 20.
Technical analysis: “The short term trend of Nifty has reversed and the recent swing high of 11340 could be considered as an important top reversal pattern and this area is unlikely to be breached in a hurry. The next downside levels to be watched around 10600, which could be achieved in the next one week. Immediate resistance is placed for any pullback rally is at 11075 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities